fitch downgrades italy to \bbb\
Last Updated : GMT 16:22:18
Arab Today, arab today
Arab Today, arab today

Fitch downgrades Italy to \'BBB+\'

Arab Today, arab today

Arab Today, arab today Fitch downgrades Italy to \'BBB+\'

Rome - AFP

The international ratings agency Fitch said Friday it had downgraded Italy\'s sovereign debt rating by one notch to \"BBB+\" from \"A-\" and added that the outlook was negative. Fitch pointed in particular to \"the inconclusive results of the Italian parliamentary elections on 24-25 February\" which \"make it unlikely that a stable new government can be formed in the next few weeks.\" Italy\'s vote left the country in a political deadlock, with no party or coalition able to form a government on its own, and party leaders have made little progress in talks so far. While the centre-left coalition won in the lower house, its failure to take the Senate has left leader Pier Luigi Bersani scrabbling to reach an agreement with the anti-establishment Five Star Movement (M5S) to form a minority government. The M5S founder, comedian Beppe Grillo, has unnerved markets and foreign investors with his attacks on unpopular austerity policies imposed on Italy by a technocratic government last year to tackle the debt crisis, as well as his call for a referendum on membership of the eurozone. Bersani\'s refusal to form an alliance with Silvio Berlusconi\'s centre-right party -- which came a close second in the election -- has also left many analysts fearing the country may be forced to return to the polls before long. The uncertainty has not been reflected on stock markets until now, but should Italy slip back into the debt mire it could have a knock-on effect on other vulnerable countries in the eurozone. Italy\'s borrowing costs rose slightly to 4.599 percent on 10-year government bonds from 4.596 percent just before Fitch\'s announcement. Fitch also noted that Italy\'s ongoing recession \"is one of the deepest in Europe,\" and warned that \"the increased political uncertainty and non-conducive backdrop for further structural reform measures constitute a further adverse shock to the real economy.\" The agency also forecast that Italy\'s public debt, one of the eurozone\'s biggest, would peak this year at close to 130 percent of GDP (gross domestic product), worse than Fitch\'s previous estimate of 125 percent. It added that the economy was likely to shrink by 1.8 percent this year, in the wake of a 2.4 percent contraction in 2012, and said that \"a weak government could be slower and less able to respond to domestic or external economic shocks.\" Fitch\'s \"BBB+\" rating nonetheless leaves Italian debt in the investment grade category, and on the bright side, it underscored the country\'s \"relatively wealthy, high value-added and diverse economy with moderate levels of private sector indebtedness.\" Rome has also made considerable progress with fiscal consolidation in the past two years, the agency noted, estimating that Italy\'s public debt would fall to around 2.5 percent of GDP this year. That \"would be close to the constitutional requirement of a balanced budget,\" and would put Rome below the eurozone public deficit ceiling of 3.0 percent of GDP. Unemployment in Italy is at a record 11.2 percent and official data this month showed that the economy shrank by 2.4 percent last year, while public debt rose to 127 percent of gross domestic product (GDP) from 120.8 percent in 2011. The head of Italy\'s main business federation warned in February that the next six months will be the worst for the country in 50 years as the economic crisis reaches its peak. Giorgio Squinzi, the head of the Confindustria lobby, called for \"shock therapy\" for Italy, with tax cuts and immediate payment of debts that the state has accrued with the private sector, and dismissed the M5S\'s idealistic economic proposals.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

fitch downgrades italy to \bbb\ fitch downgrades italy to \bbb\

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

fitch downgrades italy to \bbb\ fitch downgrades italy to \bbb\

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Prince's vision spurs new Cornwall village

GMT 03:12 2017 Saturday ,18 November

Prince's vision spurs new Cornwall village
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Israel ready to cooperate with Saudi

GMT 06:31 2017 Friday ,17 November

Israel ready to cooperate with Saudi
Arab Today, arab today Airbnb raided by Japan

GMT 01:55 2017 Saturday ,18 November

Airbnb raided by Japan
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Tesla unveils its all-electric semi truck

GMT 02:59 2017 Saturday ,18 November

Tesla unveils its all-electric semi truck
Arab Today, arab today Baidu speeds up AI progress

GMT 11:46 2017 Friday ,17 November

Baidu speeds up AI progress
Arab Today, arab today Hanan Metawe denies apology for “Major Treason”

GMT 12:22 2017 Thursday ,16 November

Hanan Metawe denies apology for “Major Treason”
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 08:06 2017 Wednesday ,15 November

Ayten Amer happy for “The Flood” success

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 06:13 2017 Friday ,17 November

Pope denounces healthcare inequality

GMT 05:18 2017 Thursday ,16 November

Boeing announces $27bn from flydubai

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday